Correlation Between Highest Performances and Trinity Capital

Can any of the company-specific risk be diversified away by investing in both Highest Performances and Trinity Capital at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Highest Performances and Trinity Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Highest Performances Holdings and Trinity Capital, you can compare the effects of market volatilities on Highest Performances and Trinity Capital and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Highest Performances with a short position of Trinity Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Highest Performances and Trinity Capital.

Diversification Opportunities for Highest Performances and Trinity Capital

-0.75

Correlation Coefficient

Highest Performances  Trinity Capital

Pay attention - limited upside

The 3 months correlation between Highest and Trinity is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Highest Performances Holdings and Trinity Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinity Capital and Highest Performances is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Highest Performances Holdings are associated (or correlated) with Trinity Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinity Capital has no effect on the direction of Highest Performances i.e., Highest Performances and Trinity Capital go up and down completely randomly.

Pair Corralation between Highest Performances and Trinity Capital

Considering the 90-day investment horizon Highest Performances Holdings is expected to under-perform the Trinity Capital. In addition to that, Highest Performances is 6.84 times more volatile than Trinity Capital. It trades about -0.08 of its total potential returns per unit of risk. Trinity Capital is currently generating about 0.18 per unit of volatility. If you would invest  1,415  in Trinity Capital on December 21, 2024 and sell it today you would earn a total of  200.00  from holding Trinity Capital or generate 14.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Highest Performances Holdings  vs.  Trinity Capital

Highest Performances

Risk-Adjusted Performance

Very Weak

Over the last 90 days Highest Performances Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Trinity Capital

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Trinity Capital are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady forward indicators, Trinity Capital displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Highest Performances and Trinity Capital

The main advantage of trading using opposite Highest Performances and Trinity Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Highest Performances position performs unexpectedly, Trinity Capital can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Trinity Capital will offset losses from the drop in Trinity Capital's long position.

The idea behind Highest Performances Holdings and Trinity Capital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.